EVN to sell stake in its finance subsidiary

Friday, Jul 21, 2017 17:36

Workers of Ha Noi Electricity Corporation at work. — Photo Hoa Viet Cuong

Ha Noi Stock Exchange (HNX) has announced that Electricity of Viet Nam (EVN) will auction 15 per cent of its stake, equivalent to 37.5 million shares, in EVN Finance Joint Stock Company.

The shares will be sold at starting price of VND14,133 (61 US cents). EVN can earn a minimum of VND530 billion through the auction.

EVN Finance currently has chartered capital of VND2.5 trillion and owns the maximum capital among operating financial firms.

The time to register and receive deposits is from now until August 11, 2017, and time for submitting the auction participation slip is until August 16, 2017.

The public auction will take place on August 18, 2017.

Under the master plan on restructuring enterprises under EVN in the period 2017-20, EVN will have to divest its capital in enterprises, including EVN Finance Joint Stock Company, Thu Duc Electro Mechanical Joint Stock Company, Dong Anh Electrical Equipment Corporation-Joint Stock Company and Thuan Binh Wind Power Joint Stock Company, as well as Power Engineering Consulting Joint Stock Company 3 and Power Engineering Consulting Joint Stock Company 4.

According to the financial report of EVN Finance, in the first quarter of 2017, the total assets of the company were over VND19 trillion but total debt was more than VND16 trillion, accounting for 80 per cent. This result is a negative sign of the company’s financial imbalance.

Currently, EVN Finance’s charter capital is divided among EVN with 15 per cent, An Binh Commercial Joint Stock Bank 8.4 per cent, Mechanics Electrical Refrigeration Joint Stock Company 1.8 per cent and the remaining 74.8 per cent belonging to other shareholders.

In 2016, EVN planned to divest 15 per cent of capital at EVN Finance but the plan failed. — VNS

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